— Total revenues increased 9.5 percent year-over-year to $222.4 million —
(ORLANDO, Fla.) Aug. 14, 2014 — CNL Lifestyle Properties, Inc., a real estate investment trust (“we,” “our” or “us”), today announced its operating results for the quarter ended June 30, 2014.
Second Quarter 2014
- Total revenues increased $11.4 million, or 10.1 percent, as compared to the second quarter of 2013.
- Net loss decreased $46.7 million, or 84.6 percent, as compared to the second quarter of 2013 primarily due to a nonrecurring impairment provision recorded in June 2013.
- Funds from Operations (“FFO”) and FFO per share increased $4.4 million, or 16.9 percent and $0.01 per share, respectively, as compared to the second quarter of 2013.
- Modified Funds from Operations (“MFFO”) increased $6.0 million, or 23.3 percent and $0.02 per share, respectively, as compared to the second quarter of 2013.
- Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) increased $5.0 million, or 15.4 percent, as compared to the second quarter of 2013.
Six Months Ended June 30, 2014
- Total revenues increased $19.3 million, or 9.5 percent, as compared to the six months ended June 30, 2013.
- Net loss decreased $49.6 million, or 63.2 percent, as compared to the six months ended June 30, 2013, primarily due to an impairment provision recorded in June 2013.
- FFO and FFO per share increased $7.0 million, or 15.6 percent and $0.02 per share, respectively, as compared to the six months ended June 30, 2013.
- MFFO and MFFO per share increased $6.2 million, or 13.8 percent and $0.02 per share, respectively, as compared to the six months ended June 30, 2013.
- Adjusted EBITDA decreased $2.4 million, or 3.6 percent, as compared to the six months ended June 30, 2013.
The increase in FFO and MFFO is primarily due to an increase in rental income from leased properties (for MFFO, rental revenue excluding straight-line adjustments for GAAP) acquired after the second quarter of 2013 as well as increases in “same-store” net operating income from managed properties. The increase was also due to a decrease in bad debt expense and reduced asset management fees resulting from the sale of our interest in 42 senior housing properties held through unconsolidated joint ventures, and a reduction in fees charged by our Advisor, effective April 1, 2014. The increases were partially offset by higher interest expense and loan cost amortization from additional borrowings made after June 30, 2013.
The decrease in Adjusted EBITDA for the six months ended June 30, 2014, is primarily a result of a reduction in cash distributions received from our unconsolidated entities due to the July 2013 sale of our interests in 42 senior living properties which were held in three unconsolidated entities. Net operating income and cash flows from these investments have been replaced as net sale proceeds have been reinvested. As a result of these new investments, as well as a reduction in bad debt expense and asset management fees, Adjusted EBITDA for the quarter ended June 30, 2014, exceeded Adjusted EBITDA for the same quarter in 2013.
The following table presents selected comparable financial data through June 30, 2014:
| SUMMARY FINANCIAL RESULTS | ||||||
| (Millions except ratios and per share data) | ||||||
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Quarter Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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2014 | 2013 | 2014 | 2013 |
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| Total revenues |
$ 124.8 |
$ 113.4 |
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$ 222.4 |
$ 203.1 |
|
| Total expenses |
120.9 |
159.9 |
|
222.5 |
254.2 |
|
| Operating income (loss) |
3.9 |
(46.5) |
|
(0.1) |
(51.1) |
|
| Net loss |
(8.5) |
(55.2) |
|
(28.9) |
(78.5) |
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| Net loss per share |
(0.03) |
(0.17) |
|
(0.09) |
(0.25) |
|
| FFO |
30.5 |
26.1 |
|
52.0 |
45.0 |
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| FFO per share |
0.09 |
0.08 |
|
0.16 |
0.14 |
|
| MFFO |
31.8 |
25.8 |
|
51.1 |
44.9 |
|
| MFFO per share |
0.10 |
0.08 |
|
0.16 |
0.14 |
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| Adjusted EBITDA |
37.5 |
32.5 |
|
65.1 |
67.5 |
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| Cash flows from operating activities |
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|
76.8 |
82.2 |
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| As of June 30, 2014: |
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| Total assets |
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$ 2,709.6 |
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| Total debt |
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1,255.1 |
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| Leverage ratio* |
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46.3% |
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| * 49.4% including our share of unconsolidated assets and debts |
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See detailed financial information and full reconciliation of FFO, MFFO and Adjusted EBITDA, which are Non-Generally Accepted Accounting Principles (“Non-GAAP”) measures, on the following pages.
Portfolio Highlights
The following tables summarize the Company’s “same-store” revenue and EBITDA for comparable consolidated properties that we owned during the entirety of both periods presented, and includes information for both leased and managed properties (other than rent coverage, which includes all leased properties):
| Number | Quarter Ended June 30, | TTM | ||||||||||||
| of | 2014 | 2013 | Increase/(Decrease) | Rent | ||||||||||
| Properties | Revenue (1) | EBITDA (1) | Revenue (1) | EBITDA (1) | Revenue | EBITDA | Coverage (2) | |||||||
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| Ski and mountain lifestyle |
17 |
|
$ 39,340 |
|
$ (13,485) |
|
$ 34,913 |
|
$ (17,412) |
|
12.7% |
|
22.6% |
1.39x |
| Golf |
48 |
|
46,031 |
|
13,151 |
|
46,383 |
|
13,025 |
|
-0.8% |
|
1.0% |
1.38x |
| Attractions |
21 |
|
80,502 |
|
19,466 |
|
74,236 |
|
16,047 |
|
8.4% |
|
21.3% |
2.07x |
| Senior housing |
20 |
|
17,690 |
|
5,480 |
|
17,124 |
|
5,675 |
|
3.3% |
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-3.4% |
1.62x |
| Marinas |
17 |
|
9,212 |
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3,162 |
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9,429 |
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3,187 |
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-2.3% |
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-0.8% |
n/a |
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123 |
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$ 192,775 |
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$ 27,774 |
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$ 182,085 |
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$ 20,522 |
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5.9% |
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35.3% |
1.46x |
| Number | Six Months Ended June 30, | ||||||||||||
| of | 2014 | 2013 | Increase/(Decrease) | ||||||||||
| Properties | Revenue (1) | EBITDA (1) | Revenue (1) | EBITDA (1) | Revenue | EBITDA | |||||||
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| Ski and mountain lifestyle |
17 |
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$ 280,919 |
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$ 96,810 |
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$ 291,159 |
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$ 102,481 |
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-3.5% |
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-5.5% |
| Golf |
48 |
|
80,039 |
|
22,156 |
|
80,723 |
|
22,063 |
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-0.8% |
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0.4% |
| Attractions |
21 |
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103,230 |
|
10,872 |
|
95,347 |
|
6,292 |
|
8.3% |
|
72.8% |
| Senior housing |
20 |
|
34,952 |
|
10,698 |
|
33,799 |
|
11,150 |
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3.4% |
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-4.1% |
| Marinas |
17 |
|
14,501 |
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4,426 |
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15,475 |
|
5,326 |
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-6.3% |
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-16.9% |
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123 |
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$ 513,641 |
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$ 144,962 |
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$ 516,503 |
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$ 147,312 |
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-0.6% |
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-1.6% |
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FOOTNOTES:
- Property operating results for tenants under leased arrangements are not included in our operating results. Property level EBITDA above is disclosed before rent and capital reserve payments to us, as applicable.
- As of June 30, 2014, on trailing 12-month (“TTM”) basis for properties subject to lease calculated as property level EBITDA before recurring capital expenditures divided by base rent.
Second Quarter 2014
- Property level revenue and property level EBITDA increased 5.9 percent and 35.3 percent, respectively, as compared to the second quarter of 2013.
- Our ski and mountain lifestyle properties experienced an increase in revenue and EBITDA due to favorable late-season conditions in certain locations, inclusive of both snowfall and temperature, allowing some of our ski and mountain lifestyle properties to remain in operation through April.
- Early season efforts to drive activity and visitation in our attractions properties resulted in a significant increase in season pass sales. In addition, favorable weather at certain of our attractions properties in the West contributed to an increase in attendance and strong early season operating results in certain of our attractions properties.
Six Months Ended June 30, 2014
- Revenue and property level EBITDA declined 0.6 percent and 1.6 percent, respectively, as compared to the six months ended June 30, 2013.
- Snow levels in the West (particularly in California) were significantly below historical norms during much of the 2013/2014 ski season as a result of warm temperatures and drought conditions. This caused our California resorts to experience poor operating results as compared to the 2012/2013 ski season.
- Record-breaking cold temperatures and ice storms caused damage to the docks and other floating structures, which resulted in the temporary closure of our largest marina, reducing operating results. Additionally, our marinas were impacted by our proactive transition of the properties to multiple new managers, which was completed in April 2014.
The following table presents same-store, unaudited property level information of our senior housing properties as of and for the quarter and six months ended June 30, 2014 and 2013:
| Number |
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Occupancy | |||||
| of |
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As of June 30, |
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Increase/ | |||
| Properties | 2014 | 2013 | (Decrease) | ||||
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| Senior housing | 20 |
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95.6% |
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96.1% |
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-0.5% |
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| RevPOU | ||||||||||||||
| Number | Quarter Ended | Six Months Ended | ||||||||||||
| of | June 30, | Increase/ | June 30, | Increase/ | ||||||||||
| Properties | 2014 | 2013 | (Decrease) | 2014 | 2013 | (Decrease) | ||||||||
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| Senior housing | 20 |
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$ 3,910 | $ 3,777 | 3.5% | $ 3,859 | $ 3,761 | 2.6% | ||||||
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The increase in revenue per occupied unit (“RevPOU”) of 3.5 percent and 2.6 percent for the quarter and six months ended June 30, 2014, respectively, as compared to the same periods in 2013 is due to an increase in average rate paid by our residents.
Acquisition Activity
During the six months ended June 30, 2014, we acquired four senior housing communities.
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